IPO Application Cancellation: Process, Timelines & Important Tips

Applying for an Initial Public Offering (IPO) is a significant financial decision. However, there may be situations where an investor reconsiders their application due to various reasons—be it change in financial priorities, market volatility, or new information about the issuing company. Understanding the process to cancel an IPO application, along with the timing and implications, is crucial. This helps investors avoid unnecessary blockage of funds or unintended participation in the issue.

You can cancel your IPO application any time between the issue opening date and the Cut-off time on the final bidding day. This window usually lasts three working days.

Cancellation must be done through the same platform—whether it’s your broker, bank, or trading app.

After the Cut-off time, cancellation is no longer allowed as the data is locked for processing. Once allotment begins, the application is considered final and cannot be withdrawn.

Also, while funds are unblocked after cancellation, the release may not be instant. In ASBA applications, your bank typically releases the hold within a few working days.

1. Log into your broker or bank’s application platform.
   

2. Locate the active IPO application under the pending/bidding section.
   

3. Select “Cancel” or “Modify Application” option.
   

4. Confirm cancellation in the pop-up or secondary prompt.
   

5. Save or screenshot your confirmation receipt for records.

• Cancellation deadline is usually between 5 PM and 6 PM on the final bidding day.
  

• Check your broker’s clock—time-zone differences may affect the actual moment you can cancel.
  

• After the deadline, your application cannot be revoked.

If you cancel your IPO application within the permitted window (before the Cut-off time), the funds blocked via ASBA are released by your bank.

Although the money was never debited, it was on hold. Once the cancellation is processed, your bank typically unblocks the amount within 1–3 business days. The exact time may vary slightly depending on your bank’s processes.

If you don’t see the funds released within this timeframe, it’s best to check with your bank or broker for updates.

• Multiple Applications: If you've applied multiple times (e.g., through different family accounts), cancelling one application won’t cancel the others. Make sure to review and cancel each one individually if needed.
  

• Partial Cancellation: Some platforms allow you to reduce the number of shares applied for instead of fully cancelling. This can be useful if you want to scale back your investment rather than exit completely.
  

• Application Charges: While most brokers and banks do not charge a fee for cancellation, it's wise to check their terms and conditions to avoid surprises.
  

• UPI Mandate Delays: If you applied via UPI, cancelling the mandate is essential. Don’t rely solely on it expiring automatically, as delays can happen. Use the UPI app to actively cancel the mandate if needed.

• Try a test cancellation with a small quantity if unsure.
  

• Keep a screenshot of the confirmation for future reference.
  

• Stay updated about deadlines through SMS or email reminders.
  

• If you miss the Cut‑off, contact your broker immediately to check possible alternatives.

Cancelling an IPO application is straightforward if done within the defined timelines. Whether you're changing your investment strategy or adjusting your exposure, being aware of the process, Cut-off times, and key considerations ensures you stay in control. Always act well before the deadline, double-check your platform's interface, and keep proof of your actions. This proactive approach can help you manage your IPO investments more effectively and with greater confidence.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.